Reparations loan at expense of Russian assets to aid Ukraine still preferable for European Commission - member
BRUSSELS. Nov 13 (Interfax) - The European Union economy and finance ministers have held a productive discussion of further financial assistance for Ukraine, European Commissioner for Economy and Productivity Valdis Dombrovskis said.
"The meeting saw broad support from member states for the Commission to continue its work on the reparations loan. There was wide recognition that this option is the most feasible means of quickly bridging Ukraine's funding gap without placing additional substantial fiscal burden on member states," Dombrovskis told a press conference after the Economic and Financial Affairs Council meeting in Brussels on Thursday.
"The continuation of this work obviously includes engaging with member states to address remaining concerns," Dombrovskis said.
Alternative options were also discussed, he said. "It has to be noted that given the debt sustainability concerns and challenges Ukraine is facing the support has to have strong grant-like features," Dombrovskis said.
One option is to finance a loan for Ukraine with borrowings rather than money relating to the Russian frozen assets, he said. But that would mean EU members having to cover any interest accrued on the loan before it is repaid in full in order to continue to support Ukraine in the form of grants, he said.
Another option involves providing Ukraine with similar assistance but in the form of direct subsidies, in which case member states would incur considerable costs servicing the debt over a short period, he said.
Hopefully, the EC will be able to present a document with Ukraine funding options in the near future, the commissioner said.
"It's important in parallel to engage with our allies and like-minded partners to provide Ukraine with liquidity already in the first quarter of next year as Ukraine's financing needs are not only large but also urgent. We are under time pressure and we must move forward in a constructive, pragmatic, and cooperative way," Dombrovskis said.
Close cooperation among EU members is also important for finding the best possible solution to the issue and easier decision-making at a meeting of the Council of the EU in December, Economic Affairs Minister Stephanie Lose of Denmark, which currently holds presidency of the Council of the EU, said.
Russian officials have repeatedly said they viewed the possible confiscation of immobilized assets as theft, which would not go unanswered.
